NIOGOLD COMPLETES $2.16M FINANCING
AND UPDATES ACTIVITIES IN THE MALARTIC GOLD CAMP

December 24, 2009

Val-d’Or, Quebec, December 24, 2009: NioGold Mining Corporation (TSX-V:NOX) (Frankfurt:NG1) (“NioGold”) is pleased to announce that it has closed its private placement announced December 7, as amended in its news release of December 9, 2009. NioGold raised gross proceeds of $2,157,000 through the issuance of 2,690,000 flow-through units (the "FT Units") at a price of $0.30 per FT Unit ($807,000) and 5,400,000 non-flow-through units (the "NFT Units) at a price of $0.25 per NFT Unit ($1,350,000).

Each FT Unit consisted of a flow-through common share and one-half of a non-transferable warrant, and each NFT Unit consisted of one non flow-through common share and one-half of a non-transferable warrant. Each full warrant from the FT Units and NFT Units will entitle the holder to purchase one non flow-though common share of NioGold at a price of $0.50 in the first year from closing and at a price of $0.75 in the second year from closing, subject to certain acceleration provisions.

In connection with the placement, the Company paid aggregate finders fees of $111,816 in cash, 80,000 common shares and 287,850 finder's warrants. Each finder's warrant is exercisable to purchase an NFT Unit on or before December 23, 2011 at a price of $0.25. All securities issued and underlying any warrants are subject to a hold period expiring April 23, 2009.

The proceeds of the private placement will be used toward exploration and development of the Malartic and Val-d’Or gold projects and for general working capital.

NioGold is also pleased to provide an update on activities in the Malartic gold mining camp, Abitibi region, Quebec. The Company expects to release NI 43-101 resource estimates and drilling results in January.

Resource Estimates

Mine Development Associates (“MDA”) is expected to complete in the next few weeks the first NI 43-101 resource estimate on the Marban gold deposit as well as upgraded resource estimates on the Norlartic and Kierens gold deposits. The former Marban, Norlartic and Kierens mines, which collectively produced over 590,000 ounces of gold, are located along a three kilometre segment of the Norbenite-Marbanite fault zone.

NioGold completed sectional geologic and mineralised zone interpretations on cross sections spaced at 12.5-metre intervals across the 1.3-kilometre extent of the Marban gold mineralised system included in the resource estimation. MDA used the NioGold sections as the geological foundation for interpreting gold mineral domains on a total of 221 vertical sections spaced at six‑metre intervals across the deposit. This detailed modeling has helped to elucidate and define the structural setting of the Marban deposit. Gold occurs within a number of mineralised shear zones within the mafic volcanic ‘Mine Sequence’, which has been deformed into relatively tight folds that are characterised by sub-horizontal fold axes. These folds most commonly occur between ‑50 to ‑150 metres vertical depth. The mineralised shears are folded along with the host mafic volcanic units, but gold mineralisation extends for significant distances outward from the folds.

In addition to the new Marban resources, the mineral resources at the Norlartic and Kierens deposits, first reported on June 28, 2007, are being updated. These updates include new data from historic holes that NioGold recovered from its archives, as well as a significant extension of the Norlartic modeling beyond the limits of the 2007 resources. This new portion of the Norlartic deposit to be incorporated into the updated modeling includes significant shallow mineralisation that may be amenable to open-pit extraction. Three-dimensional rectification of the Norlartic and Kierens gold mineral domains on level plans, spaced at three-meter intervals along the full vertical extent of the presently defined gold mineralisation, will be incorporated into the updated modeling. This detailed modeling should allow significant portions of the Norlartic and Kierens resources to be upgraded from Inferred to Indicated.

Exploration Drilling

Drilling on the Malartic camp land holdings resumed in September. Drilling efforts were concentrated along the projection of the Marbanite and Norbenite faults to the northwest and on trend with the Marban, Norlartic and Kierens gold deposits. To date, 4,450 metres of drilling has been completed on the target. Several important shear zones containing sections of sulphide mineralisation were intersected. Pending complete assay results from this drilling and new structural interpretation of the sector, the drill rig was mobilised to the Marban deposit area. Two drill hole fences are planned to investigate the east and west extent of the Marbanite fault and Mine Sequence. The drill hole sections are located 450 metres east and 300 metres west of NioGold’s previous drilling.

The management of NioGold would like to take this opportunity to wish its shareholders and their families a safe and happy holiday season.

NioGold

Mining Corporation – « The Golden Highway Runs Through NioGold »

NioGold Mining Corporation is a junior exploration company primarily focused on GOLD. The Company’s flagship projects are located in the Malartic and Val-d’Or gold mining camps, Abitibi region of Quebec. The camps have produced over 27 million ounces of gold and presently encompass several active advanced exploration and mine development projects such as Canadian Malartic (Osisko Mining), Goldex (Agnico-Eagle), Kiena (Wesdome), Lac Herbin (Alexis Minerals) and Midway (Northern Star Mining). The Malartic camp land holdings encompasses three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced over 590,000 ounces of gold.

NioGold’s experienced and qualified technical team will ensure the successful advancement of the Company’s projects towards the highest quality mineral resources. NioGold invites you to visit the company website at www.niogold.com.

This news release was prepared by Rock Lefrançois, P.Geo. (OGQ), the Company’s President and Qualified Person as defined by National Instrument 43-101. For information on NioGold Mining Corporation contact:

This Press Release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The TSX Venture Exchange or the Frankfurt Stock Exchange did not approve nor do not accept responsibility for the adequacy or accuracy of this news release.

For further information please contact:

Dale Paruk
NioGold Mining
Tel: 604-662-4505
Toll-free 1-877-642-6200
Email: [email protected]